Does access to information technology make people happier? Insights from well-being surveys from around the world*

Similar documents
Employee Benefit Research Institute. Key Learnings for Employers from the Gallup Healthways Well-Being Index

The Importance of a Broadband Plan

ITU World Telecommunication Development Report. Access Indicators for the Information Society. Press Briefing UN, Geneva 4 December 2003

The Internet as a General-Purpose Technology

BROADBAND CONNECTIVITY IN SOUTH AFRICA. Harold Wesso Ph.D Acting Director General: Department of Communications

PROPOSAL FOR FREE WIFI TO ASSIST IN THE ACHIEVEMENT OF THE NATIONAL DEVELOPMENT PLAN

Measuring the Information Society Report Executive summary

Differences in employment histories between employed and unemployed job seekers

Broadband stimulus and the economy Dr. Raúl L. Katz (*) Adjunct Professor, Division of Finance and Economics

The Characteristics and Determinants of Entrepreneurship in Ethiopia

As Minnesota s economy continues to embrace the digital tools that our

Global Progress by CRPD States Parties

International ICT data collection, dissemination and challenges

Summary of Findings. Data Memo. John B. Horrigan, Associate Director for Research Aaron Smith, Research Specialist

Unlocking the potential

United Nations Educational, Scientific and Cultural Organization UNESCO STRATEGY FOR TVET ( )

Digital technologies have spread rapidly

The implementation of a national agenda for ICTs: The Colombian case

Measuring the relationship between ICT use and income inequality in Chile

The Gender Digital Divide in Rural Pakistan:

Economic and Social Council

and vision for development

foundationcenter.org/gainknowledge

Note, many of the following scenarios also ask you to report additional information. Include this additional information in your answers.

2 nd European Summit Measuring the Information Society Red.es observatorio Madrid, January 24-25, 2008

Access to Broadband. Focusing on demand stimulation strategies. Sonia Jorge Consulting Director, Regulation and Policy

The development dimension of e-commerce and the digital economy

CHAPTER-7 ICT DIFFUSION AND DIGITAL DIVIDE IN INDIA

Online Classifieds. The number of online adults to use classified ads websites, such as Craigslist, more than doubled from 2005 to 2009.

AU 9 TH PRIVATE SECTOR FORUM

Settling for Academia? H-1B Visas and the Career Choices of International Students in the United States

Universal Access to Information & Communication Technology in the Asia Pacific Region

Gender and Internet for Development The WOUGNET Experience

Health impact assessment, health systems, health & wealth

Primary Schools - ICT and Standards Supporting data Tables of correlation between Ofsted grades and QCA attainment data

Concept note for the side event on ICT statistics to the 3rd session of the Committee on Statistics of ESCAP

The Life-Cycle Profile of Time Spent on Job Search

egovernment Implementation Strategies and Best Practices: Implications for sub Saharan Africa

Broadband. Business. Leveraging Technology in Kansas to Stimulate Economic Growth

World Development Report 2016

Entrepreneurship and the business cycle in Latvia

MaRS 2017 Venture Client Annual Survey - Methodology

The development of public eservices in Europe: New perspectives on public sector innovation

AERC and Diaspora. Lemma Senbet* University of Maryland

Health service availability and health seeking behaviour in resource poor settings: evidence from Mozambique

Community Consultation Survey. Presented to: Board of Directors

Digital revolution has brought many private benefits

Economic and Social Council

90% OF THE 1.1 BILLION HOUSEHOLDS WITHOUT INTERNET ACCESS ARE IN DEVELOPING COUNTRIES The power of a connected

The SUBSIM Project and Beyond. Paolo Verme and Abdelkrim Araar June, 11 th, 2015

Global. Entrepreneurship Monitor. Scotland Jonathan Levie

International Business 7e

Heikki Salmi. Advisor to the Director General, Directorate General Enterprise & Industry

Measuring ICT Impacts Using Official Statistics

Broadband Internet Affordability

Statistical Yearbook for Asia and the Pacific Statistical Yearbook. for Asia and the Pacific

Healthcare 2015: Win-win or lose-lose?

ITU Statistical Activities

NATIONAL BROADBAND POLICY

NUMBERS, FACTS AND TRENDS SHAPING THE WORLD FOR RELEASE JANUARY 24, 2017 FOR MEDIA OR OTHER INQUIRIES:

Kiva Labs Impact Study

Broadband Landscape in the ESCWA Region

Policy Options for Connecting and Enabling the Next Billion

Kingston Hospital Integration Perceptions of the General Public. Survey Results Final Report October 21, 2016 Prepared by HILL+KNOWLTON STRATEGIES

Vodafone Group Plc June Our contribution to the UN SDGs

Digital Bangladesh Strategy in Action

The Software Industry Financial Report

Appendix. We used matched-pair cluster-randomization to assign the. twenty-eight towns to intervention and control. Each cluster,

SCHOOL - A CASE ANALYSIS OF ICT ENABLED EDUCATION PROJECT IN KERALA

Financing Mechanisms and Reforms to Leverage Local Resources

Employment in Europe 2005: Statistical Annex

Integra. International Corporate Capabilities th Street NW, Suite 555W, Washington, DC, Tel (202)

Helping Small Shops Make A Big Difference

Niagara Health Public Opinion Poll 2016

An Assessment Of The Quality Of Life Of HIV/AIDS Patients And Their Families In Ghana During the Scale Up of Delivery of Antiretroviral Treatment

Broadband KY e-strategy Report

Primary Care Measures at the Sub-Region Level

Correlates of ICTs and Employment in Sub-Saharan Africa

Health System Outcomes and Measurement Framework

A decade of the information society

Zoltán J. Ács László Szerb Ainsley Lloyd

Plan of Action for the Information Society in Latin America and the Caribbean elac 2007

igd IMPACT PRACTICAL, BUSINESS-DRIVEN IMPACT MEASUREMENT ICT // 2014

Government policies to foster entrepreneurship

Partners. Your Excellency, Group Captain Anudith Nakornthap, Minister of Information and Communications Technology of Thailand,

STRATEGIC OBJECTIVES & ACTION PLAN. Research, Advocacy, Health Promotion & Surveillance

Digital Financial Services: Job creation, Innovation and Entrepreneurship. Increasing the Impact

The Entrepreneurship Database Program at Emory University 2017 Year-End Data Summary (Released February 2018)

S t a r t u p I n d i a G o i n g D i g i t a l. M a r k e t I n t e l l i g e n c e. C o n s u l t i n g

WBUR Poll Survey of 500 Registered Nurses in Massachusetts Field Dates: October 5-10, 2018

The Economic Impact of Telecommunications in Senegal

DOES IT PAY TO WORK FROM HOME? EXAMINING THE FACTORS INFLUENCING WORKING FROM HOME IN THE GREATER DUBLIN AREA

If the World is your Oyster,.Where are the Pearls?

Open Data Development of Countries: Global Status and Trends

Labor Market Openness, H-1B Visa Policy, and the Scale of International Student Enrollment in the US

The Impact of Entrepreneurship Database Program

Call for Proposals 2014 cycle

Employed and Unemployed Job Seekers: Are They Substitutes?

New Year brings positive news for the job market reveals the latest ManpowerGroup Employment Outlook Survey

Partnership on Measuring ICT for Development

Transcription:

Does access to information technology make people happier? Insights from well-being surveys from around the world* Carol Graham and Milena Nikolova UNLV February 13, 2014 *Published in : The Journal of Socio-Economics, 44(2013), 126-139 1

A new science? Until five or so years ago, I was one of a very small number of seemingly crazy economists using happiness surveys, and surely the only one working on developing economies; Today - remarkable interest in the topic; momentum, reflects the work of many academics, and experiments like those of the UK (others) that have taken the science and the metrics seriously; OECD guidelines; NAS panel on metrics for U.S. policy The science of measuring well-being has gone from a nascent collaboration between economists and psychologists to an entire new approach in the social sciences Can answer questions as diverse as the effects of commuting on wellbeing, why cigarette taxes make smokers happier, why the unemployed are less unhappy when there are more unemployed people around them, and why people adapt to things like crime and corruption and bad governance. 2

A new science: the metrics Method is particularly well-suited for questions that revealed preferences do not answer, such as situations where individuals do not have the agency to make choices and/or when consumption decisions are not the result of optimal choices. Examples: a) the welfare effects of macro- and institutional arrangements that individuals are powerless to change (macroeconomic volatility, inequality) b) behaviors that are driven by norms, addiction or self-control problems such as: i) lack of choice by the poor due to strong norms or low expectations ii) obesity, smoking, and other public health challenges Two distinct dimensions of well-being (hedonic vs evaluative) Bentham or Aristotle in the census bureau? A) Evaluative includes life choices and fulfillment (eudemonia) B) Hedonic has positive and negative dimensions e.g. smiling and happy not a continuum with stress or worry 3

Happiness and GNP per Cap: Progress Paradox? 4

Happiness in Latin America: Age-pattern conforms! Happiness by Age Level Latin America, 2000 level of happiness 18 26 34 42 50 58 66 74 82 90 98 years of age 5

Technology=Progress: Does it Make People Happy? Exponential growth of access to ICTs worldwide Information technology is key to economic progress in today s global economy; provides connectivity, information, agency but like all development related changes, progress paradox issues» contributions to GDP growth 10 ppt in broadband penetration => per capita GDP growth by 0.9 1.5 ppt in OECD for 1996-2007 0.1-0.4 percentage growth of GDP due to broadband infrastructure in Europe, 2002-2007» access to information/communications capacity» access to financial services mobile banking Kenya: 18 million mobile money users (75 percent of population)» Provides new capabilities e.g. agency! 6

Impact of ICTs on Growth Source: World Bank, 2013, The Transformational Use of Information and Communication Technologies in Africa, p. 21. 7

Access to ICTs, Sub-Saharan Africa, 2006-2012 80% 70% 60% 50% 40% 30% 20% 10% 0% 2006 2007 2008 2009 2010 2011 2012 cell phones internet landline TV Source: Gallup World Poll, 2005-2013 8

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Access to landlines and cell phones, by region, 2009-2011 Landline in Home Cell Phone in Home Source: Gallup World Poll, 2008-2012 9

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Access to internet and TV, by region, 2009-2011 Television in Home Internet Access in Home Source: Gallup World Poll, 2008-2012 10

On your cell phone, do you regularly?* *Asked of those with cell-phones Send text messages Take pictures/video Access the internet 0% 20% 40% 60% 80% Source: Pew Research Center, 2012 11

Research questions» well-being effects of the increased access to ICTs around the world?» relationship between well-being and capabilities/agency?» do the effects vary across the well-being dimensions (hedonic vs. evaluative)? 12

Hypotheses: ICTs and subjective well-being Well-being dimension Expected association with ICT access Positive hedonic well-being + Rationale ICTs are positively correlated with hedonic well-being ICTs are positively associated with Evaluative wellbeing + Negative hedonic well-being + simplify daily tasks job search communication with family especially in remote areas or deprived contexts e-banking reduce asymmetric information empowerment via communications capability access to information more possibilities for people to be active searchers of information and independently conduct financial transactions increased stress and anger increased change and complexity too much new information less social interaction 13

Data Gallup World Poll (2005-2012)» annual survey run by the Gallup Organization ~ 140 countries (~ 1,000 respondents per country)» pooled cross-sections» telephone and face-to-face surveys» range of questions household income, attitudes, hedonic and evaluative wellbeing Employment data starting in 2009 Global Findex Database for 2011 (World Bank)» implemented by Gallup as part of the 2011 World Poll» 148 countries (~ 1,000 respondents per country)» telephone and face-to-face surveys» questions on the use of mobile phones to pay bills, send or receive payments (among others) 14

Subjective well-being variables (dependent variables) Well-being dimension Evaluative well-being (EWB) Positive hedonic wellbeing (HWB) Negative hedonic wellbeing Negative hedonic wellbeing Measure Cantril ladder on the Best Possible Life respondent ranks her current life relative to her best possible life on a scale of 0 to 10, where 0 is the worst possible life; 10 is the best possible life Smiled a lot yesterday (yes/no) Experienced stress yesterday (yes/no) Experienced anger yesterday (yes/no) 15

ICT variables (focal independent variables) Does your home have?» a landline telephone?» a cellular phone?» a television?» access to the Internet? 16

Main model and estimation Y itr = 1 landline itr + 2 cell phone itr + 3 TV itr + 4 internet itr + X itr + Z itr + r + t + itr» i indexes individuals, t denotes time, and r denotes country» Y is subjective well-being» X and Z are vectors with individual and household-level controls e.g., age, gender, having a child, living in urban/rural area, etc.» c are country dummies and t are year dummies Estimation:» logits and ordered logits (bpl = 1-10, hedonic vars = 0-1)» country and year dummies» robust standard errors 17

Summary statistics 1: Best possible life 10 9 8 7 6 5 4 3 2 1 0 Best Possible Life (0=worst; 10=best) 18

Summary statistics 2: hedonic variables 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Smiled Yesterday Experienced Stress Yesterday Experienced Anger Yesterday 19

Determinants of ICT access VARIABLES Cell Phone Internet TV Landline in Home (1=Yes) 0.017 (0.015) Internet in Home (1=Yes) 1.235*** (0.024) Age 0.029*** 0.028*** 0.000 (0.002) (0.002) (0.000) Age squared/100-0.061*** -0.070*** -0.000** (0.002) (0.002) (0.000) Female (1=Yes) -0.037** -0.016-0.003 (0.017) (0.017) (0.002) Married (1=Yes) 0.132*** 0.043** -0.009*** (0.018) (0.018) (0.002) Married and Female (1=Yes) -0.058*** -0.033 0.011*** (0.022) (0.022) (0.002) High School Education or Higher (1=Yes) 0.605*** 0.969*** 0.025*** (0.024) (0.016) (0.001) Household Income (in 10,000s of ID) 0.415*** 0.492*** 0.005*** (0.017) (0.011) (0.000) Employed Full Time (1=Yes) 0.267*** 0.116*** 0.005*** (0.013) (0.013) (0.001) Urban Area (1=Yes) 0.628*** 0.824*** 0.098*** (0.013) (0.012) (0.001) Child in Household (1=Yes) 0.111*** -0.124*** -0.004*** (0.013) (0.013) (0.001) Household Size 0.101*** 0.103*** 0.010*** (0.003) (0.004) (0.000) Country Dummies Yes Yes Yes Year Dummies Yes Yes Yes Observations 310,000 316,669 318,606 Pseudo R-squared 0.214 0.441 0.436 20

Main results VARIABLES BPL Smile Stress Anger Landline in Home (1=Yes) 0.315*** 0.129*** -0.087*** -0.047*** (0.009) (0.013) (0.013) (0.014) Cell Phone in Home (1=Yes) 0.355*** 0.261*** -0.086*** -0.059*** (0.010) (0.013) (0.014) (0.015) TV in Home (1=Yes) 0.581*** 0.198*** -0.156*** -0.167*** (0.012) (0.017) (0.017) (0.019) Internet in Home (1=Yes) 0.514*** 0.231*** 0.019-0.065*** (0.010) (0.014) (0.013) (0.015) Learned or Did Something Interesting Yesterday (1=Yes) 0.419*** 1.177*** -0.302*** -0.255*** (0.007) (0.010) (0.009) (0.011) Country Dummies Yes Yes Yes Yes Year Dummies Yes Yes Yes Yes Individual Controls Yes Yes Yes Yes Observations 301,516 266,851 268,919 269,054 Pseudo R-squared 0.0858 0.123 0.0703 0.0503 21

Summary of regional results Important differences between poor and wealthy regions Access to TV and cell phones» A positive correlation with evaluative well-being in Sub- Saharan Africa, Latin America, and Southeast Asia» Not significant in wealthy regions (North America, parts of Europe, Australia and New Zealand Access to the internet» significant and positive across the world 22

Do ICTs have differential impacts in poor and rich contexts? VARIABLES BPL BPL Smile Smile Stress Stress Anger Anger Landline in Home (1=Yes) 0.311*** 0.300*** 0.128*** 0.118*** -0.084*** - 0.076*** -0.047*** - 0.044*** (0.009) (0.011) (0.013) (0.013) (0.013) (0.013) (0.014) (0.014) Cell Phone in Home (1=Yes) 0.437*** 0.331*** 0.286*** 0.251*** -0.137*** - 0.076*** -0.073*** - 0.056*** (0.012) (0.011) (0.015) (0.013) (0.016) (0.014) (0.017) (0.015) TV in Home (1=Yes) 0.565*** 0.556*** 0.193*** 0.188*** -0.146*** - 0.145*** -0.165*** - 0.163*** (0.013) (0.014) (0.017) (0.017) (0.017) (0.017) (0.019) (0.019) Internet in Home (1=Yes) 0.522*** 0.692*** 0.234*** 0.335*** 0.015 Cell Phone Access*Household Income (in $10,000) -0.126*** - 0.078*** -0.067*** - 0.102*** (0.010) (0.036) (0.014) (0.019) (0.013) (0.017) (0.015) (0.019) - 0.040*** 0.074*** 0.022* (0.011) (0.013) (0.013) (0.013) Internet Access*Household Income (in $10,000) -0.122*** -0.075*** 0.069*** 0.027*** (0.027) (0.009) (0.008) (0.009) 23

Determinants of learning (a possible channel in the relationship) VARIABLES Learn Smiled Yesterday (1=Yes) 1.182*** (0.010) Landline in Home (1=Yes) 0.120*** (0.012) Cell Phone in Home (1=Yes) 0.183*** (0.013) TV in Home (1=Yes) 0.112*** (0.016) Internet in Home (1=Yes) 0.292*** (0.013) Age -0.020*** (0.001) Age squared/100 0.010*** (0.002) Female (1=Yes) -0.072*** (0.014) Married (1=Yes) -0.005 (0.015) Married and Female (1=Yes) -0.086*** (0.018) High School Education or Higher (1=Yes) 0.387*** (0.014) Household Income (in 10,000s of ID) 0.030*** (0.003) Employed Full Time (1=Yes) 0.117*** (0.010) Urban Area (1=Yes) 0.024** (0.010) Child in Household (1=Yes) -0.071*** (0.010) Household Size -0.006** (0.003) Region Dummies No Country Dummies Yes Year Dummies Yes Observations 266,851 Pseudo R-squared 0.126 24

Well being and access to mobile banking in Sub- Saharan Africa VARIABLES BPL Smile Stress Anger Landline in Home (1=Yes) 0.427*** 0.008-0.258** 0.113 (0.089) (0.065) (0.125) (0.142) Cell Phone in Home (1=Yes) 0.227*** 0.237*** 0.019-0.001 (0.053) (0.057) (0.074) (0.062) TV in Home (1=Yes) 0.636*** 0.164*** -0.090-0.202*** (0.100) (0.041) (0.076) (0.071) Internet in Home (1=Yes) 0.336*** 0.202*** 0.060-0.048 (0.108) (0.058) (0.088) (0.087) Mobile 0.219*** 0.093*** 0.325*** 0.109*** (0.024) (0.010) (0.016) (0.016) Learned or Did Something Interesting Yesterday (1=Yes) 0.350*** 1.188*** -0.415*** -0.337*** (0.051) (0.101) (0.083) (0.083) Country Dummies Yes Yes Yes Yes Individual Controls Yes Yes Yes Yes Observations 23,674 23,580 23,622 23,661 Pseudo R-squared 0.0483 0.0932 0.042 0.0239 25

Limitations Reverse causality» possible but unlikely is it really likely that happier people are more likely to acquire information technology? Lack of panel data» unobserved heterogeneity The results may be underestimating the effects of ICTs on wellbeing» ICT externalities likely apparent at the aggregate and not individual level Different survey modes across countries» happier on the phone (Dolan and Kavetsos, 2012)» include country dummies and mode is the same within countries so should control for it 26

Conclusions: Does tech access enhance well-being? In general: well-being» positive effects most pronounced in poor contexts» but also stress and anger Diminishing marginal returns for those with much access ICTs positively correlated with learning» learning could explain the stress and anger findings Well-being effects of mobile banking (above and beyond ICTs)» but also stress and anger (progress paradox, again) Access to ICTs can only complement but not substitute development - the provision of public goods and infrastructure is important Fits into a broader pattern of our research which shows that the process of acquiring agency/capabilities can have negative effects in the short term, while raising overall well-being levels in the long term happy peasants and frustrated achievers 27